Strong Refi Years Ahead
BMC Capital’s Patrick Short predicts we'll have good years for commercial refi in Colorado through '16. It’s part of a nationwide trend, with CMBS maturities set to more than double between this year and ’16. “Property owners with maturing loans during the next three years will either sell or refinance,” he says. “Both scenarios bode well for the commercial financing industry.”
Borrowers are already eager to get ahead of the curve, especially since rates are still low (and you never know what those zany central bankers at the Fed will do). Recently Patrick arranged a $7.85M cash-out refi for a 120-unit multifamily property with LIHTC restrictions located in Eagle. The loan featured a 75% LTV, 10-year fixed rate at 4.93% and a 30-year amortization. Nationwide, BMC Capital anticipates originating at least 150 such refi deals this year.